SM Investments Corp. is taking its integrated transportation and logistics firm private as it announced a tender offer to acquire the 15.39-percent stake in 2GO Group Inc.
The logistics company said in a stock exchange filing its board of directors approved the voluntary delisting of the company’s shares from the main board of the Philippine Stock Exchange.
The planned delisting is subject to the successful completion of SMIC’s tender offer, compliance with other requirements of the PSE for voluntary delisting and applicable regulations of the Securities and Exchange Commission.
SMIC said Tuesday its board of directors approved the conduct of a tender offer to acquire 378.82 million shares, equivalent to 15.39-percent stake in 2GO.
The conglomerate said the tender offer would provide the company “with greater exposure to the long-term growth and financial success of 2GO”.
The final terms of tender offer price are subject to third-party fairness opinion as required under the PSE’s tender offer rules.
It expects the tender offer to commence in the second quarter of 2023.
The conglomerate engaged BPI Capital Corp. as the independent third-party valuation provider and to render the fairness opinion.
It also appointed BDO Securities Corp. as tender offer agent.
Based on 2GO’s closing price of P9.10 per share Tuesday, the tender offer could cost P3.4 billion. Trading of 2GO shares was suspended Wednesday to allow the investing public to digest the information.
After five years of continued losses, 2GO managed to turn around with a net income of P312 million in 2022 on the back of higher revenues.
Gross revenues reached P19.3 billion last year, up 25 percent from 2021 as the company benefitted from the country’s economic reopening and complete lifting of movement restrictions.
SMIC acquired majority control of 2GO in 2021 from businessman Dennis Uy.